Jan Stentoft Arlbjørn and Teit Lüthje
A major part of economic globalization has taken place in the form of different globalization strategies. Offshoring and outsourcing of manufacturing activities from Western…
Abstract
Purpose
A major part of economic globalization has taken place in the form of different globalization strategies. Offshoring and outsourcing of manufacturing activities from Western locations to Eastern Europe and the Far East are used to remain competitive. Such strategies have implications for supply chain performance. The purpose of this paper is to explore whether supply chain performance is affected differently depending on the choice of globalization strategy.
Design/methodology/approach
The paper is based on in‐depth literature reviews and explorative case studies – two offshoring and two outsourcing projects. A model explaining the choice of localization and globalization strategy (the OLI model) is applied as a basic framework. Data have been collected through in‐depth interviews with persons responsible for the offshoring and outsourcing projects.
Findings
The paper addresses different practices of managing supply chain performance in offshoring and outsourcing strategies. The OLI model provides an increased consciousness of the managerial challenges related to supply chain performance based on the chosen globalization strategy.
Research limitations/implications
The paper is explorative in nature and is based on four case studies. The paper provides no basis for statistical generalizations.
Practical implications
The supply chain performance is affected both positively and negatively in each type of globalization strategy. The OLI model provides an extended understanding of the factors that should be considered in decision processes concerning offshoring and outsourcing.
Originality/value
In this paper, the OLI model is integrated in a new understanding of supply chain performance.
Details
Keywords
This paper aims to contribute to the literature on the changing role of the defence sector in the economy at industry and enterprise levels focusing on defence‐civilian…
Abstract
Purpose
This paper aims to contribute to the literature on the changing role of the defence sector in the economy at industry and enterprise levels focusing on defence‐civilian cooperation and defence supply networking with foreign industry enterprises from complex industry‐perspective.
Design/methodology/approach
Measuring is based on the comparative industry data and the unique survey evidence for the Slovenian defence industry enterprises to derive managerial and policy implications.
Findings
The role of the defence industry in the economy declined, but trade deficits from arms and ammunition increased. The industry enterprises can gain from defence‐civilian cooperation and defence supply chain networking with foreign industry enterprises. Information‐coordination institutions are seen to provide opportunities for future industry development in Slovenia.
Research limitations/implications
This research focuses on Slovenia. Future enhancement of the research would be to look into the possibility of applying the findings to other countries. The size of the enterprise, and even more the size of the country, does matter in the defence‐market chain activities.
Practical implications
The proposed industry firm‐level survey approach provides useful policy and managerial implications in the evaluation of defence industry supply and market chain cooperation and networking activities with foreign industry enterprises. The study proves the usefulness of the results, both to the future organizational development and as a decision‐making tool in the complex industry systems.
Originality/value
This paper adds to the industry firm‐level analyses as data management tools for evaluating the defence‐civilian cooperation and networking of complex industry market chain activities for more effective management.